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Physical Stores, Predators Touch The Net, Set Off New Competition

2011/7/8 11:14:00 55

Physical Store Touches The Net

Mid year has always been the off-season shopping season, but in June this year, the Jingdong's shopping mall picked up the "mad rush red June".

Among them, home appliance chain predator Suning Electric power force online shopping mall, suning.com in June a large range of on-line department store products attract the most attention, home appliance chain enterprises also began to enter the network, and extended from household appliances to department stores.


Household appliances chain touches for sale


They sell both L'OREAL and sell.

Giordano

There are both bamboo mat and lighter.

Today, on the front page of suning.com, 6 categories of daily necessities, such as clothing, bags, home textiles, beauty care, mother and baby toys, watches and jewellery, daily chemical care and so on, "enjoy" the same size of sales promotion with home appliances.

Zhang Jindong, Suning chairman, admits that online shopping will become the second battleground of Suning, which is equivalent to "reconstructing an online Suning".

It is estimated that in 2020, sunning only had 300 billion yuan in online sales, accounting for nearly half of Suning's total sales. In these 300 billion yuan, sales of household electrical appliances accounted for only 50%, and the rest came from department stores.


"Compared with offline competition, the growth of online sales is too tempting.

Take the largest Jingdong mall in China, for example, last year, the turnover amounted to 10 billion 200 million yuan, and the annual paction growth rate reached 100%, which is still eroding the market share of traditional retailers. "B2C"

Su Huiyan, an analyst with AI consulting, said, "this makes the traditional appliance chain giants such as the US and Soviet Union very eyed."

With the increasingly fierce price war of several e-commerce websites in the field of 3C appliances, "the United States and Soviet Union" also realized that it is better to build and strengthen themselves instead of being "forced".


Although it was late, it was the first quarter of this year.

Sales volume

Suning.com, which is expected to exceed $8 billion a year or 1 billion 290 million yuan, is still on the line in April of this year. The sales of the National Mall, which has exceeded 10 million yuan per day, has been broken out by the traditional appliance chain giants from the traditional department stores. Once they touch the net, they have the 3 major advantages that Jingdong can hardly match. The supply chain management system, the logistics distribution covering the whole country, and the long-term and sustainable low price.


  

E-Shop

Competition is more intense


Reporters observed that the home appliance chain was once a successful representative of the commercially differentiated market. From the department store, the strong and strong winners would have to go back to the department store.

It is understood that B2C online sales department store profits are relatively high, which led to a number of original single location shopping websites selling online stores, such as: Jingdong mall originally positioned IT digital and household appliances, and Dangdang and excellent were originally the main books website, but now they have sold department stores.

Over a year of experience, suning.com is also trying to expand its online competition with Jingdong mall from "home appliance war" to "department store war".


In fact, Suning's view of bigger stores is not just online.

Reporters recently saw Suning's future concept store in Nanjing, not only in department stores and home appliances, but also in virtual products such as telecom recharge, insurance business, ticketing reservation, online book and entertainment consulting.


Nowadays, the age of online shopping is quite different from that of home appliance chain shuffling. Only by "price war" and "scale war" can we not get rid of the "Blood Route".

Experts pointed out that Suning, suning.com, Tesco's life Plaza three independent brand operation of the "sea, land and air" triangular formation, will allow China's top 100 chain of Suning run a new round of fast lane.

At the same time, "Suzhou" department store strategy or stimulation to competitors including Gome followed up, and it will become more and more common for future consumers to buy department stores in home appliance chain stores.

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